LETTER TO THE SHAREHOLDERS
Dear Shareholders,
We saw a prolonged pandemic even in 2021 striking the Global and Indian
economy back again. In India second and third wave's economic effect was significantly
less than the full lockdown in 2020-21, but the health consequences were far more severe
to continue with the economic uncertainty throughout the year.
Due to steadfast collective efforts from the Citizens and Govt. Of
India, the third Covid-19 Omicron wave subsided by the end of Q3 2021. India's broad range
of fiscal, monetary and health responses to the crisis supported recovery and, along with
economic reforms, are helping to mitigate a longer-lasting adverse impact of the crisis.
New infections have fallen significantly, vaccination rates have risen to surpass a
billion doses and now with most of the restrictions being lifted, the country is on its
way to normalcy.
As per official estimates, following a contraction of 7.3% in 2020-21,
the Indian economy growth rate is estimated to be at 8.3-8.8% in 2021 - 22, citing a
stronger-than-expected economic recovery from the impact of national lockdown of 2020 and
the third wave of the Covid-19 pandemic in 2021. Indian economy expanded at a record high
of 20.1% year-on-year in Q2 2021 and outperformed counterparts among key developing market
economies from April to December 2021. During April- November 2021, the Index of
Industrial Production (IIP) increased by 17.4% YoY, compared to a contraction of 15.3% in
April- November 2020.
Although Indian economy is estimated to grow at 7.5-8% in the current
fiscal year, the biggest challenge is going to be to return to a high growth trajectory.
As the new financial year begins, there is greater uncertainty on this question, due to
the ongoing geopolitical crisis which is fuelling a surge in global financial market
volatility and commodity prices especially crude oil. Also the continuing global
supply-side disruptions pose downside risks to the outlook. But in-spite of the
pessimistic scenario where high oil prices and supply distortions remain a drag on growth,
India's indicators of macroeconomic stability imply that the Indian economy is well
positioned to meet the challenges of 2022-23.
While I commenced with this annual letter describing the economic
challenging landscape, I remain proud of what your company " NRB Industrial
Bearings Limited " and our NIBL Team Members have achieved, collectively and
individually in the fiscal year 2021-22. Throughout these past two challenging years, we
never stopped doing all the best things we should be doing to serve all our stakeholders.
It is clear that our constant investment in research and development to provide quality
bearing solutions and ongoing skill development of our people is what enabled us to
persevere in this turbulent economic times.
With the objective to strive for solid financial performance and
relentless quest for excellence, your company NRB Industrial Bearings has delivered strong
performance in fiscal 2021-22. You company has generated revenue growth of 21 %,
significantly exceeding the previous business volume, as well as setting numerous other
records like highest ever domestic business and highest ever export business.
Our strong underlying performance, reflects the dedication, efficiency
and exceptional ability of our talented NIBL team, who was focused on creating value that
matters for all our stakeholders, despite the extreme challenges which came on the way due
to the COVID-19 pandemic.
We are confident in our ability to continue to meet the expectations of
all our stakeholders and consistently deliver on the promise of quality bearing solutions.
As we approach the new fiscal year 2022 - 23 with confidence, we are excited about the new
opportunities, and are convinced that NRB Industrial Bearing is in an excellent position
to further strengthen its presence in the markets that we operate in.
Our vision is to be the leader in Friction Management in every market
we serve, for the betterment of our customers, employees and shareholders. Our mission is
to continuously create consistent value for our customers and supply chain partners that
will maximize shareholder value and long-term earnings growth. And it is possible only if
you maintain a healthy and vibrant company, which means understanding the needs and taking
care of your customers, employees and communities.
I want to thank NIBL Team Members for their hard work and commitment to
living our purpose of delivering superior shareholder value.
I also want to thank our customers, shareholders, partners and
communities for their continued trust and support.
Devesh Sahney
Chairman & Managing Director NRB Industrial Bearings Limited.